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Economy

Ouko doubts KPA will recover Sh3bn held in Chase Bank

Chase Bank on Mama Ngina Street in Nairobi on April 7,2016, shortly after it was placed under statutory management. file photo | nmg
Chase Bank on Mama Ngina Street in Nairobi on April 7,2016, shortly after it was placed under statutory management. file photo | nmg 

Auditor-General Edward Ouko has raised doubts over whether Kenya Ports Authority (KPA) can recover Sh3 billion it deposited in Chase Bank four months before it was placed under receivership in April 2016.

Mr Ouko said it remains unclear whether the KPA would recover the billions placed in fixed deposits as the Central Bank of Kenya seeks a buyer to revive the bank.

“Under the circumstance, it is not possible to confirm recoverability of the short-term deposits totalling to Sh2,957,000,000 invested in Chase Bank as at June 30, 2016,” he said in a qualified audit opinion of the KPA books of accounts dated July 7, 2017. The fixed deposits have matured.

Regulators placed the mid-sized Chase Bank under receivership in April 2016 after an unexplained loss of billions of shillings.

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